Search Documents

By Michael A. Gustafson, Fernando B. Sotelino

INTRODUCTION The degree of success of any new project will ultimately depend on two factors: (i) the underlying economic strength of the project; and (ii) how successfully the parties involved can coordinate their interests to establish a financing structure which indeed capitalizes on the project's inherent economic attractiveness. A project's underlying economic attractiveness is determined by its inherent comparative advantage in accessing the factors of production, combining these factors of production to create a product and marketing this product. Initially, the decision regarding whether to go ahead with the project - the go/no go decision - has to be based on its total ability to generate cash flow returns to project participants to compensate them for resources committed and risks undertaken. The extent to which project sponsors will actually benefit from the project's inherent economic attractiveness is fundamentally dependent on their ability to establish the long-term financing arrangement which best meets the objectives and constraints of each project participant and sources the most advantageous funding. The decision regarding the financing of the project, the "how-to-go" decision, is then an attempt to find the capital structure, consistent with market terms and conditions and sound financial management policies which will best: (i) match planned outflows with cash inflows; and (ii) maximize the return for project sponsors. This article makes use of a case study to illustrate the analytical process involved in dealing with the go/no go and the how-to-go decisions on a project. Though most commonly applied to project finance situations, the guideline described herein is equally applicable to other financing situations, such as leveraged buyouts and debt restructurings, where timely repayment of debt depends largely on the future cash flows to be generated by the entity being financed. Our case study is of a hypothetical expansion of an existing copper mining operation in Latin America. The company, Latin American Copper (LAC) currently has 147 million metric tons of proven sulphide ore reserves. The existing mine complex consists of an open pit mining operation and a conventional flotation plant with a processing capacity of 20,000 metric tons of ore per day. LAC sells copper concentrates primarily to Japanese custom smelters. The mine has been in operation for 5 years, fine copper production last year was 108,240 metric tons, and LAC currently has assets of $175 million and net worth of $135 million. Due to a recent increase in proven reserves, LAC is considering doubling the treatment capacity of its flotation plant to 40,000 tons per day, and expanding its mining capacity to meet the additional concentrator capacity (the "Project"). Project capital expenditures and incremental working capital have been estimated at approximately $210 million. The construction period is expected to cover one year, including a three-month start-up phase. The Project is to be funded by a combination of equity, senior debt, including both supplier credits and/or commercial bank term loans, and subordinated debt. LAC's shareholders are willing to commit a maximum of $50 million to the Project. A government development agency, which is also a minority shareholder, might be willing to lend approximately $40 million to LAC in the form of subordinated notes, depending on the ability of the Project to generate foreign exchange reserves. Commercial banks cannot be expected to offer loans with maturities longer than ten years. The Project is expected to increase the value of the firm because: (i) It will solidify the Company's position as a low-cost copper producer by taking advantage of economies of scale. As a result of the expansion, cash production costs are expected to decrease 7.0[c]/lb. and all-in costs 11.0[c]/lb; (ii) The potential earnings stream from the sulphide ore reserves will be realized

Jan 1, 1985

By G. B. Walker, S. A. Falconer, S. J. Swainson, H. H. Vogel

During the past few years much interest and attention has been focused on a relatively new method of ore concentration, which utilizes the principles of sink and float and employs as the heavy medium a suspension in water of a finely ground solid, such as galena or ferrosilicon. Although a relatively recent development, much progress has already been made in applying heavy-media separation processes to a considerable number of ores. Eight plants in this country and abroad are now treating approximately 10 million tons of ore annually by heavy-media separation (sink-float) processes, including lead-zinc, lead, iron, garnet, tin and tungsten. At the annual meeting of the A.I.M.E. in 1941, three interesting papers (unpublished) dealing with heavy-media separation (sink-float) processes of ore concentration as practiced in four commercial units in the United States were presented by Victor Rakowsky, Grover Holt, Elmer Isern and Robert Ammon. These papers gave an excellent exposition of the principles of sink and float, as well as the operating practice in two iron-ore-beneficiation plants, the Harrison and the Merritt, of Butler Brothers, in Minnesota; the Central mill of the Eagle Picher Mining and Smelting Co.; and the Mascot mill, of the American Zinc, Lead and Smelting Co. Augmented by pictorial descriptions and a working model demonstrating the processes, these papers evoked a great deal of interest and discussion. In fact, in reporting the high lights of the meeting in the April 1941 issue of Mining and Metallurgy, Professor Taggart made the statement that " preconcentration by heavy suspension was Miss A.1.M.E 1941 so far as milling is concerned." Although to date the greatest application of heavy-media separation from the tonnage point of view has been for the treatment of lead, zinc and iron ores, these processes have a much wider field of usefulness. In this regard, it is to be noted that recently new heavy-media separation plants for treating cassiterite ore and garnet ore have been placed in successful operation. Moreover, numerous other types of ores have been found to respond well to these processes when tested on a semi-commercial scale, and it is expected that in the near future a considerable number of new plants will be erected. In view of the fact that heavy-media separation processes offer such attractive possibilities, particularly now, when the mining industry is being called on for an even larger production than ever before has been attempted, despite shortages of labor and supplies, it was felt that a description of some of the successful separations that have been worked out during the past year in the Ore Dressing Laboratory of the American Cyanamid Co. on a variety of ores of strategic importance would be of interest. The purpose of this paper, therefore, is to present the essential data relating to investigations of heavy-

Jan 1, 1943

By G. B. Walker, S. J. Swainson, S. A. Falconer, H. H. Vogel

During the past few years much interest and attention has been focused on a relatively new method of ore concentration, which utilizes the principles of sink and float and employs as the heavy medium a suspension in water of a finely ground solid, such as galena or ferrosilicon. Although a relatively recent development, much progress has already been made in applying heavy-media separation processes to a considerable number of ores. Eight plants in this country and abroad are now treating approximately 10 million tons of ore annually by heavy-media separation (sink-float) processes, including lead-zinc, lead, iron, garnet, tin and tungsten. At the annual meeting of the A.I.M.E. in 1941, three interesting papers (unpublished) dealing with heavy-media separation (sink-float) processes of ore concentration as practiced in four commercial units in the United States were presented by Victor Rakowsky, Grover Holt, Elmer Isern and Robert Ammon. These papers gave an excellent exposition of the principles of sink and float, as well as the operating practice in two iron-ore-beneficiation plants, the Harrison and the Merritt, of Butler Brothers, in Minnesota; the Central mill of the Eagle Picher Mining and Smelting Co.; and the Mascot mill, of the American Zinc, Lead and Smelting Co. Augmented by pictorial descriptions and a working model demonstrating the processes, these papers evoked a great deal of interest and discussion. In fact, in reporting the high lights of the meeting in the April 1941 issue of Mining and Metallurgy, Professor Taggart made the statement that " preconcentration by heavy suspension was Miss A.1.M.E 1941 so far as milling is concerned." Although to date the greatest application of heavy-media separation from the tonnage point of view has been for the treatment of lead, zinc and iron ores, these processes have a much wider field of usefulness. In this regard, it is to be noted that recently new heavy-media separation plants for treating cassiterite ore and garnet ore have been placed in successful operation. Moreover, numerous other types of ores have been found to respond well to these processes when tested on a semi-commercial scale, and it is expected that in the near future a considerable number of new plants will be erected. In view of the fact that heavy-media separation processes offer such attractive possibilities, particularly now, when the mining industry is being called on for an even larger production than ever before has been attempted, despite shortages of labor and supplies, it was felt that a description of some of the successful separations that have been worked out during the past year in the Ore Dressing Laboratory of the American Cyanamid Co. on a variety of ores of strategic importance would be of interest. The purpose of this paper, therefore, is to present the essential data relating to investigations of heavy-

Jan 1, 1943

By W. R. Bean

Probably few, if any, of the many serious problems confronting malleable foundries have been more difficult of solution than the question as to why malleable that is ductile, black in fracture, and normal in all respects before galvanizing should, by that process, be rendered brittle, brilliantly crystalline or "white" in fracture, and of low resistance to shock. So far as we are aware, the technical literature contains no data or discussions on this subject, except two referencesl,2 of a general character. It is apparently a question that every one concerned, producer and consumer alike, has been willing to evade as far as possible. Various theories as to the cause of the deterioration have been given but such checking of these theories as we have done indicates that there was no sound basis for most of them. This work on the galvanizing of malleable was first undertaken in 1916, and has continued until the present time. We now feel that for all practical purposes we have reached a solution and are glad to be able to offer it in a form that can be readily applied to production processes. It is impossible to give here a detailed account of the early work done on this problem. A great number of tests were instituted and an enor-

Jan 1, 1923

By W. R. Bean

Probably few, if any, of the many serious problems confronting malleable foundries have been more difficult of solution than the question as to why malleable that is ductile, black in fracture, and normal in all respects before galvanizing should, by that process, be rendered brittle, brilliantly crystalline or "white" in fracture, and of low resistance to shock. So far as we are aware, the technical literature contains no data or discussions on this subject, except two referencesl,2 of a general character. It is apparently a question that every one concerned, producer and consumer alike, has been willing to evade as far as possible. Various theories as to the cause of the deterioration have been given but such checking of these theories as we have done indicates that there was no sound basis for most of them. This work on the galvanizing of malleable was first undertaken in 1916, and has continued until the present time. We now feel that for all practical purposes we have reached a solution and are glad to be able to offer it in a form that can be readily applied to production processes. It is impossible to give here a detailed account of the early work done on this problem. A great number of tests were instituted and an enor-

Jan 1, 1923

By R. G. Ward, D. R. Gaskell

Using the maximum bubble pressure technique, the densities of iron silicates at 1410°C have been measured blowing helium, nitrogen, and argon. By ensuring equilibrium between the melt and the blowing gas with respect to oxygen potential and by minimizing tempcrature cycling of the furnace, iron precipitation in the melt has been prevented. Thus the previously reported effect of blowing-gas composition on the densities of the melts has been eliminated. Consideration of the oxygen densities of the melts gives an indication of the structural changes accompanying composition change. The density-composition relationship of iron oxide-silica melts in contact with solid iron has been the subject of several investigations1-7 and considerable disparities exist among the various results obtained. Of these investigations, all except one5 have employed the maximum bubble pressure method. In the most recently reported of these investigations1 the density-composition relationship obtained blowing nitrogen differed from that obtained blowing argon. The measured densities obtained under nitrogen were greater than those obtained under argon, the difference being a maximum at the pure liquid iron oxide composition and decreasing with increasing silica content. This observation rationalized the disparities existing among the results of the earlier investigations, showing that two lines, one for nitrogen and the other for argon, could be drawn to fit all the earlier results. No explanation for this phenomenon could be offered. Chemical analysis of rapidly quenched samples of melt for dissolved nitrogen, and direct weighing measurements, excluded solution of nitrogen in the melt from being the cause of the increase in density. The range of blowing gases was extended by Ward and Hendersons who measured the density of liquid iron oxide bubbling helium, nitrogen, neon, argon, and krypton. The measured density was found to decrease smoothly with increasing atomic number of the bubbling gas. The work reported here is a continuation of the program initiated by Ward and Sachdev7 to study the densities in multicomponent melts in which the iron oxide-silica system is the solvent. As such it is necessary to explain or eliminate the anomalous densities of iron silicates under different atmospheres, and the present rede termination was carried out towards this end. EXPERIMENTAL The maximum bubble pressure method of density determination was again employed and the experimen- tal apparatus used was essentially the same as that used by Ward and Sachdev.7 A molybdenum-wound resistance furnace heated an ingot iron crucible of internal diameter 1 in. containing a 2-in. depth of melt. The bubbling gas was blown through a 1/4 -in.-diam mild steel tube onto the end of which was welded a 2-in. extension of 1/4 -in.-diam ingot iron rod, drilled out to 5/32 in., and chamfered to an angle of 45 deg. The blowing tube was introduced to the furnace through a sliding seal and its position was controlled by a vertically mounted micrometer screw which allowed the depth of immersion to be determined with an accuracy of ± 0.01 cm. A Pt/Pt-10 pct Rh thermocouple was located below the crucible and temperature control was effected initially by means of an on-off controller and later by a saturable core reactor. The bubble pressure was determined by measurement of a dibutyl phthalate manometer using a cathetometer. PREPARATION OF MATERIALS Iron oxide was produced by melting ferric oxide in an inductively heated iron crucible in air. The liquid was quenched by pouring onto an iron plate. Silica was prepared by dehydrating silicic acid at 650°C for 12 hr. RESULTS Before any measurements of the density of a melt were made, the density of distilled water at room temperature was measured bubbling helium and argon. Both gases gave the density as 1.00 ± 0.01 g per cu cm which showed that the density of the manometric fluid (dibutyl phthalate) was not affected by contact with the blowing gas. With the furnace controlled by an on-off temperature controller an attempt was made to measure the density of pure liquid iron oxide by bubbling argon. The furnace atmosphere gas and bubbling gas were dried over magnesium perchlorate and deoxidized over copper turnings at 600°C. It was found that the pressure required to blow a bubble at a given depth increased slowly with time, and thus it was impossible to obtain a unique value for the density of the melt. Inspection of the blowing tube after removal from the furnace showed that rings of dendritic iron had precipitated from the melt onto the immersed part of the tube. This is shown in Fig. l(a) where the various "steps" correspond to different depths of immersion. The precipitation of iron was considered to be due to one or both of two possible causes: i) The composition of the liquid iron oxide is that of the liquidus at the temperature under consideration and can be expressed by the equilibrium

Jan 1, 1968

By C. F. Allen, G. B. Walker

The sink-float methods designated by heavy-media separation processes were pioneered by C. Erb Weunsch for the treatment of base metal ores as an improvement over jigs. The work of Weunsch was further developed by Victor Rakowsky and The American Zinc, Lead and Smelting Co. Early in the development of the processes, the inherent unsuitability of galena as the solid constituent of the medium was recognized and ferrous media amenable to magnetic recovery and control were developed. The high efficiency and low cost of magnetic recovery and cleaning of ferrous media regardless of particle size, slime contamination, or surfacial oxidation had led to the adoption of ferrous media by all of the sink-float plants operating under the heavy-media separation processes patents controlled by American Zinc, Lead and Smelting Co. Approximately 2,000,000 tons of base metal and nonmetallic minerals are treated each month by these methods. Heavy-media separation processes are a modern practical and economical adaptation of the well-known laboratory procedure for separating a mixture of two solids by immersing the mixture in a liquid having a specific gravity intermediate the specific gravities of two solids. The lighter solid floats while the heavier sinks. This method of separation has been attempted on a commercial scale, but the high loss and high cost of the organic liquids halted the development of the process. Many attempts have been made to simulate a heavy liquid by using a suspension of a finely divided solid in water. If the solid phase of the suspension is ground fine enough, the suspension can be made stable or so slow settling that a substantially uniform specific gravity can be maintained from top to bottom of the bath. However, any material separated by such methods will inevitably be contaminated by some slime which will eventually accumulate in the bath and cause a viscous medium at the expense of separating efficiency. Therefore, it is necessary to provide means for continually cleaning a portion of the medium to eliminate slime at the same rate at which it is introduced to the medium. The problem of efficiently cleaning the medium limits the minimum grain size of the solid of the suspension in the case of the Chance sand process for cleaning coal, because de-cantation is the only cleaning method available. If the sand is too fine, it will be lost along with the slime. Therefore, coarse sand must be used, and to maintain a semblance of a uniform suspension, it is necessary to use strong rising water currents. The combination results in a separation based more on hindered settling classification than on sink-float principles. As previously mentioned, galena was used as the solid constituent of the medium during the early stages of the development work. The high specific gravity of galena made it suitable for the preparation of medium for high specific gravity separations. Galena can be cleaned by either decantation or by froth flotation. As with sand, de-cantation limits the minimum particle size of the media that can be cleaned without excessive loss. Froth flotation for cleaning galena medium has been used, but the problem of floating fine galena that has been exposed to extensive oxidation is well known to be a most difficult one. Last year the largest heavy-media plant m the world, and the second plant to be installed, converted from galena medium to ferrous medium despite the fact that the ore contains galena which can be used as medium. The change to ferrous medium has been beneficial in many ways. Today all the heavy-media plants have been converted from galena to ferrous media. Unquestionably, ferrous media have the widest application of any media developed, for the following reasons: 1. Ease of recovery and cleaning by magnetic means. Particle size or surface condition not a factor. 2. Low consumption per ton of ore treated. 3. Resistance to abrasion. 4. Widest range of media densities, including higher workable densities (1.25 to 3.4) than have been found possible with nonferrous media. 5. Space required for recovery and cleaning of ferrous media is considerably less than that for nonferrous media. 6. Ferrous media require lower capital investment and operating costs for media recovery and cleaning. Advantages of Heavy-media Separation Processes Heavy-media separation processes offer the following positive advantages, amply demonstrated on a wide variety

Jan 1, 1950

By J. W. Graham

For many years the author has been cognizant of the difficulty encountered by some in treating with the water influx formulas for unsteady-state fluid flow as pertain to the material balance equation. This has particularly applied in establishing reservoir performance and identifying reservoir pressure, which to the practicing engineer has entailed a trial-and-error procedure, and for others has necessitated resorting to computing devices and reiteration processes. In retrospect this difficulty stems from the fact that reservoir pressure in the material balance formulas, as well as associated with the water influx equations, is an inexplicit term, and the work reported in the past is irrefutable. However, what will be presented in this paper is another approach to the problem, whereby the entire material balance equation will be treated by the Laplace transformation, and reservoir pressure which hereto has been inexplicit, can now be isolated by mathematical procedure to relate that parameter with all the factors contributing to its change. This is the simplification entailed, that treats first with an undersaturated oil reservoir as an integrated effect from the inception of production. The second phase pertains to saturated oil reservoirs that encompass a survey traverse. Although both methods of approach are necessarily different in aspect, the most interesting fact is that the mathematics so deduced are identical. Both the linear and radial water-drive systems are incorporated. for which an illustrated factual example is offered for the latter, treating with a saturated oil reservoir. INTRODUCTIO N What is performed in this work is the simplification of an involved computation by advanced analysis. Although such may be construed as a contradiction when one treats with higher mathematics; nevertheless, when direction is given to such an undertaking the results car. be most revealing. Likewise, it is to be mentioned that the bases for these mathematics have been developed on the expediency of the occasion. This is not to be inferred as a qualification of this work, but rather the demands frequently placed upon the author in his private prac- tice in meeting a time limit. A situation, instead of being fraught with hazards, often has given emphasis to creative thought. What will be entailed in this work is the simplification of the material balance formulas by the Laplace Transformation., Although this reveals entirely new horizons that will be given expression in a forthcoming tract, it suffices in the present instance to limit our attention to this phase of the development that treats both with an undersaturated and saturated oil reservoir. To orient the reader's thoughts as to what is involved in this simplification is the recognition that reservoir pressure, as such, is an inexplicit term in the material balance equation. This is the independent parameter that defines the total history of performance in the author's' unsteady-state water influx formulas, as well as the basis for the physical dependency of fluid behavior within the formation as prescribed in the Schil-thuis' material balance equation. Therefore, to isolate reservoir pressure, which is the most essential factor in any reservoir study, is rather a cumbersome procedure entailing either a trial-and-error calculation for the engineer; or as some prefer, a reiteration process performed on a computing device. However, once such an equation can be transcribed as a Laplace transformation, this inexplicitness so expressed can be alleviated to identify reservoir pressure as an explicit function of all the factors contributing to its change. This is the simplification encompassed, that will treat first with an undersaturated oil reservoir as an integrated effect from the inception of production, and secondly, with a saturated oil reservoir as a survey traverse. Although the two approaches are necessarily different because of the uhvsics involved. it is an interesting commentary that the mathematics are identical, showing the interdependency of the two methods. In order to acquaint the reader with this development, the simplest case will be treated first; namely, an under-saturated oil reservoir subject to a linear water drive. However, what may be construed for this example as an idealistic case is actually a most practical application in certain parts of the world, where the size of the fields are so large that radial water-drive approaches the configuration of a linear drive. Further, to avoid the repetition of much symbolism, frequent references will be made to the work of the author and an associate on Laplace Transformations3,

By R. S. McClellan

DURING the last year or so, with higher prices for gold and silver, many old properties in the West have come back to life. Almost every profitable producer in the old days has been considered, and the reasons for its shut-down investigated. If it seems likely that modern ore-finding, mining, and metallurgical methods, and S35 gold can again put the property on a profitable basis, someone can usually be found to back the venture. Methods of rejuvenation vary with the property, of course, but the following outline of what has been done with one group of mines in Idaho is fairly typical and may be suggestive to others. The Golden Chariot gold-silver properties, near Silver City, consist of seven old mines, working a vein system striking north and south, which had a productive length of some 3500 ft. The vein is a quartz-filled fissure with granite walls. Gold occurs in native, and with silver in the form of electrum which is the natural alloy of the two metals. Silver also occurs in a variety of sulfides. From 1064 to 1876, these old properties were worked intensively to an average depth of about 700 ft., through seven shafts which range in

Jan 1, 1934

By Robert J. Willard

The scanning electron microscope (SEM), became commercially available in 1966. Embodying some unique features not provided by conventional electron microscopes, this new electron-optical instrument offers the scientific community a new way of observing the surfaces of materials. In rock mechanics research, the SEM should prove a useful basic tool in characterizing rock fracture on a very small scale and thus contribute to a better understanding of rock behavior at larger scales. This article presents one example of how the SEM is being applied to such research at the Twin Cities Mining Research Center operated by the U.S. Bureau of Mines in Minneapolis. This research center conducts theoretical and experimental studies on a broad range of mechanisms that induce disintegration by the application of energy to rock.1 Some of these studies are concerned with the relation of microstructure to rock behavior and are carried out mainly with the petrographic microscope. At the same time, however, the center recognizes that this relation must be studied through several orders of magnitude, from lattice-size units of rock-forming minerals to field-size rock units. The SEM fits this scheme by extending the capability of the petrographic microscope into smaller orders of magnitude. However, because its resolution is limited to about 200 A at 10,000x, the SEM is not capable of resolving lattice-size units, and hence a conventional electron microscope with a much greater resolution capability is necessary at this order of magnitude.

Jan 6, 1969

(Under this heading will be published notes sent to the Secretary of the Institute by members or other persons introduced by members.) Experienced mining engineer, Columbia School of Mines graduate, practical experience in drifting, shaft sinking and development work, also in mining, operating and equipping iron, copper and zinc properties. Married, age 32, available at once. Open for position as superintendent or assistant. No. 462. Member, mining engineer, age 39, married, technical graduate, 12 years' experience in gold mining and milling; past four years as superintendent of large properties. At present employed but open for engagement after July 1; will consider no position not offering a future. Salary $4800. No. 467. Member, mining engineer, age 46, married, desires a position as superintendent, or an opening with an industrial company of permanency. Western and Alaskan experience in mining, cyanidation anti concentration. At present manager of an Eastern property, but desires a change. Available on thirty days' notice. No. 468.

Jan 7, 1918

By Francois Clerf

IRON ORE fields are situated in both the East and West of France (see maps). The eastern deposit is by far the most important from a tonnage point of view, not only in France, but in all Europe. The ores of this region are known as minette, and are situated in the Lorraine ore fields and the Briey plateau. The iron ores of the West are those of Normandy, Anjou and Brittany. Before the war, a large number of important German companies had acquired considerable interests in these western fields and a heavy trade with Westphalia had begun. Recently, however, conditions have changed and some of the mines of Brittany and Anjou are now idle. From a geological point of view, in Anjou and Brittany, a series of synclines extends from the northwest to the southeast, containing a number of seams of varying thickness and generally intercalated in Silurian and sometimes in Devonian formations. The ore is generally a hematite or a magnetite. The composition varies from 48 to 52 per cent of iron and from 8 to 12 per cent of silica. Con¬servative estimates indicate a con¬siderable tonnage of workable ores (150,000,000 metric tons).

Jan 1, 1936

By Leroy Palmer

ALL the domestic. production of magnesite during 1925 came from two states, California and Washington. Of a total of 120,660 tons of crude ore, 64,600 tons, or 54 per cent., were produced in California.1 Of .this quantity California produced about 99 per cent. of the caustic calcined, but only 10 per cent. of the dead-burned. The largest producer was C. S. Maltby, of San Francisco, who operated the Red Mountain mine, in Santa Clara County, and the Sampson mine, in San Benito County, under lease. These two mines have been studied by the author, and offer interesting comparisons as to mining and treatment methods and final products. GEOLOGY The general geology of the magnesite deposits of California has been described by Hess,2 Bain3 and others,4 and although a detailed discussion is not necessary here, a brief summary will assist in understanding mining conditions. California magnesite, when comparatively pure, is usually a white, fine-grained rock, with a conchoidal fracture, occurring in veins and lense-like masses in serpentine. The veins vary considerably in width, and usually occur in a series of more or less parallel veins intersected by other series or systems of veins, probably following original or secondary fissures in the enclosing serpentine. The most generally accepted theory of origin is that the magnesite was formed by the action of surface waters charged with C02 percolating downward through fissures and changing the magnesium silicates of the serpentine into magnesium carbonate.

Jan 1, 1927

By Milton Fies

ALTHOUGH pig iron from iron ore and red cedar charcoal preceded the mining of coal by many years, for tradition says that Alabama iron was used to shoe the horses of Andrew Jackson's soldiers, coal was not produced until 1830. In that year, coal was mined in Tuscaloosa County, in the vicinity of what is now the University of Alabama, and shipped on flat boats (obviously during the wet season, for there were many shoals) down the Warrior River to Mobile. About that time, the first railroad, the Decatur & Tecumseh, was being constructed in northern Alabama to overcome the obstructions to freight traffic caused by the now well-known Muscle Shoals in the Tennessee River. This railroad was patterned after a railroad at Mauch Chunk, Pa., which was used for hauling anthracite from the Panther Creek valley. The Alabama railroad, which required about four years to complete, was 46 miles long and was used solely for the transportation of cotton. Although it was a failure, it demonstrated the practicability of the undertaking, and the succeeding railroads, which were begun in 1834, 1848, 1852, and 1853, added immeasurably to the development of the coal resources of the state. Between the years 1830 and 1860, practically all the coal mined in the state was dug from the outcrop near the river or from the river beds, and shipped by boat to Mobile. Transporting coal down the Warrior River was one of great risk, required much skill, and frequently had heavy losses. It is recorded that this coal was sold to the gas company in Mobile in 1844; it was most likely mined from the Black Creek Seam. In 1914, on the completion of Lock 17, the Warrior River became a navigable stream from 9 miles above Cordova, Ala., to Mobile and offers a great opportunity for the future development of the coal resources of the state.

Jan 9, 1924

By Gary P. Thomason

INTRODUCTION One may have heard about how various projects were financed or certain companies were successful in obtaining a bank loan, but there are many more projects and companies who fail to get the money they need. At least a portion of these failures, and a large percentage of the frustrations connected with even the successful financings, are a result of not understanding the process of obtaining money. Recent years have seen a proliferation of debt financing sources available to finance minerals operations (see the next Chapter 11), but these represent only a minor portion of the minerals financing market. The fundamental source of borrowed money to many minerals related companies remains the banks. Therefore, understanding the "Loan Approval Process" can easily mean the difference between getting the money or not. LOAN APPROVAL PROCESS The initial stages of the loan approval process should begin long before the bankers, and the organizations they represent, enter upon the scene. The loan approval can be broken down into six stages: 1) Generation 2) Preparation 3) Presentation 4) Evaluation 5) Approval 6) Documentation As you can see in Figure 1, the bank is only directly involved in the second half of the process. The perils in obtaining financing for the smaller minerals venture are primarily in the first three stages, not the last three. The minerals venture making application for a loan can, in almost every case, improve its chances of success by carefully planning and preparing itself and the information that will be required of it in the loan approval process. Generation This first step in the process is deciding on the need for a loan. (Earlier papers in this Book and in Chapter 11 provide some guidance.) It is surprising how many ventures confuse the need for money with the need for a loan. Suffice to say that the equity investor risks both the timing of the yield on his capital and, ultimately, his capital. The lender, on the other hand, advances temporary funds which he expects to be repaid on a specific schedule with a fixed

Jan 1, 1985

By L. G. Jones, A. S. Odeh

A theoretical developtment is presented which provides a straightforward method of handling the drawdown analysis for both oil and gas wells flowing at variable rates. In the past our inability to analyze variable-rate drawdowns has been a major obstacle in using them for formation evaluation. This method should permit wider use of these tests in the future. INTRODUCTION Pressure build-up analyses are widely used to obtain reservoir data such as the effective flow capacity of the formation. On the other hand. although pressure drawdowns have been run for a long time, they have not been used extensively to evaluate reservoirs because they are difficult to analyze. One of the difficulties in analyzing pressure drawdowns has been that the theory developed until now has required the test to be run at a constant rate. For both oil and gas wells this is a difficult requirement to satisfy. especially during the early period of a well's life when drawdown tests are usually run. In spite of this limitation, drawdown tests are often run with build-ups as a check. In this paper a theory, which handles the drawdown analysis for variable rates, is presented for both oil and gas wells. Thus, one of the biggest deterrents to running drawdowns is removed, and they should become a much more useful engineering tool in the future. THEORETICAL CONSIDERATIONS 011, RESERVOIRS The general equation used for describing the unsteady-state radial flow of slightly compressible fluids in homogeneous porous media can be written in cylindrical coordinates as where r is the radial distance in cm, t is the time in seconds, p is the pressure at r and t in atmospheres, + is the fractional porosity, p is the viscosity in cp, c is the compressibility in vol/vol/atm, and k is the permeability in darcies. There are a number of solutions of Eq. 1 for various boundary conditions. One of these is the so-called "point-source" solution, which approximates the case of an infinite oil reservoir with a well located at r = 0 and produced at a constant rate. The point-source solution of Eq. 1 is

Jan 1, 1966

By Herbert A. Everest

Discussion of the paper of HERBERT A. EVEREST presented at the New York meeting, February, 1916, and printed in Bulletin No. 109, January, 1916, pp. 165 to 167. NEWELL G. ALFORD, Earlington, Ky. (communication to the Sec-retary*).-Mr. Everest's statement concerning the economies in a small coal mine has interested me very much. The majority of discussions on coal-mine economy omit the small operator and for this reason Mr. Everest's paper should lead to productive thought. I agree that close concentration of working places and constructive supervision of labor are two items of salvation to the small operator. It is also true that small mines often yield as much profit per capital invested as their larger neighbors. Mr. Everest also says that the small operator has so keen a regard for the inroad on his profits that even one extra day hand is an extravagance not tolerated, and this is rightly so. But, does not this earmark of the small operator in many cases offer a clue to his vital weakness? A credit balance is the acid test of success in any enterprise. With the small operator who owns practically all the capital stock this is particularly significant. He never takes his eyes off the market price and at the same time strains every nerve to cut down his payroll. In several cases I have noted that the resultant close supervision of labor was in fact too close. The "stitch in time" was not applied to the repair of this or that, with a decided increase to the cost of the work when it had to be done at the expense of cutting off the run when orders were on the books.

Jan 5, 1916

By R. Schuhmann, J. Th. Overbeek, P. L. De Bruyn

THE technique of concentrating valuable minerals from lean ores by flotation depends upon the creation of a finite contact angle at the three-phase contact, mineral-water-air. If the mineral is completely wetted by the water phase, contact angle zero, there is no tendency for air bubbles to attach themselves to the mineral. However, when the contact angle is finite, the surface free energy of the system, water-air bubble-mineral particle, can be diminished by contact between the bubble and the particle, and if not too heavy the mineral will be levitated in the froth. With a few exceptions, all clean minerals are completely wetted by pure water. Thus the art of flotation consists in adding substances to the water to make a finite contact angle with the mineral to be floated, but to leave the other minerals with a zero contact angle. The contact angle concept and experimental measurements of contact angles have played important roles in flotation research for several decades.'-" Nevertheless, there remain unanswered some basic questions as to the scientific significance of the contact angle and the nature of the processes by which flotation reagents affect contact angles. The contact angle is a complex quantity because the properties of three different phases, or rather of three different interfaces, control its magnitude. Considering the interfaces close to the region of ternary contact to be plane, the relation among the contact angle and the three binary interfacial tensions is easily derived. The condition for equilibrium among the three surface tensions, Fig. 1, or the requirement of minimum total surface free energy leads to Young's equation, Eq. I: ysa — ysl = yLA cos 0 [1] According to this equation, the contact angle has one well-defined value. Actually it is found in many experiments that the value of the contact angle depends on whether the air is replacing liquid over the solid (receding angle) or the liquid is replacing air (advancing angle). The receding angle is always the smaller of the two.4 Two explanations have been offered for this experimental fact. According to some investigators,5-8 roughness of the surface causes apparent contact angles that are different for the receding and the advancing cases although the actual local contact angle may be completely determined by Eq. 1. The other explanation involves the hypothesis that the solid-air interface after the liquid has just receded is different from the same interface when no liquid has previously covered it.1,4 Adsorption of constituents of the air or liquid might play a role here. In this discussion the difference between advancing and receding contact angle will be neglected and plane surfaces where Eq. 1 describes the situation will be considered. But there is still a fundamental obstacle to the application of Young's equation. The surface tension of the liquid (rla) can easily be determined, but the two surface tensions of the solid (rsa and ySL) cannot be measured directly. Eq. 1, however, is not without value. By contact angle measurements it is possible to establish how ysl — ysl varies with the addition of solutes to the liquid phase. Also, Eq. 1 affords a convenient starting point for calculating net forces and energy changes involved in the process of bubble-particle attachment.1,2 . If for the moment surface tension of the liquid (yLa) is considered a constant, an increase in ysa — ysL, will tend to decrease the contact angle. A decrease in ySA — ysl, corresponds to an increase of the contact angle. In cases where ySA — ySL > yLa the contact angle is zero; it will only reach finite values when ysa — ysa has been decreased below YLA. Thus on the basis of Young's equation and contact angle measurements alone, it can be learned how flotation reagents affect the difference Ysa — ysl, but no conclusions can be drawn as to the effects of reagents on the individual surface tensions ysa, and ysL, not even as to signs or directions of the surface tension changes resulting from reagent additions. A quantitative relationship between the surface tension or interfacial tension and the adsorption occurring at a surface or an interface is given by the Gibbs equation, which for constant temperature and pressure reads dy = — 2 T, du, [2] where dy is the infinitesimal change in surface tension accompanying a change in chemical potential

Jan 1, 1955

By Linda Lee, R. E. Reed-Hill, C. R. Smeal

Four fcc metal surfaces, etched to make them responsive to polarized light, have been studied with an electron microscope. Jones'prediction that these surfaces are grooved has been verified. Optical-goniometer measurements made on commercially pure nickel indicate that the groove walls are poorly defined (100) facets. Surface mientations close to either 4001 or {ill).- show no extinctions on the polam'zid-light microscope. An explanation is offered for this orientation dependence. It has also been deduced that polarized-light extinctions on a grooved cubic-metal surface should not be used directly in crystallographic-orientation determinations. The nature of the etching solutions that produce these surfaces is considered. A cubic-metal surface may be made responsive to polarized light in two basic ways."' In one, an anodic film, believed anisotropic, is formed on the surface. A plane-polarized-light beam, at normal incidence, should be reflected from this type of film with an ellipticity that varies with grain orientation. Under crossed polarizers of a polarized-light microscope, each grain may be distinguished from its neighbors by a difference in reflected-light intensity. An alternate treatment,' more generally applicable to cubic metals and of principal concern here, involves etching of grain surfaces. The characteristic features of this surface were first deduced by Jones3 from light-microscope observations. She concluded that, in general, grain surfaces were furrowed so that light was reflected from two parallel sets of etched facets. A grooved surface produces elliptical polarization of a plane-polarized beam because the beam does not strike groove walls at normal incidence. Jones also observed that the furrows must have faces inclined to each other by approximately 90 deg, since the light returns along the incident path, and that a grooved surface should show four maxima and minima of reflected-light intensity during a 360-deg stage rotation of the polarizing microscope. Positions of maximum extinction were predicted to occur when groove axes were parallel to either polarizer or analyzer vibration directions. Because of the limited resolving power of Jones' optical microscope, her deductions were primarily indirect. Proof of the correctness of her conclu-sions, as demonstrated by the electron microscope, will be given as well as evidence concerning the crystallographic nature of the etch furrows and the types of etching solutions that produce them. EXPERIMENTAL PROCEDURE During a comprehensive study of hot plastic deformation in nickel and nickel alloys, an etch was evolved that produced a surface with an excellent polarized-light response on Nickel 200 ("A" Nickel). The etching solution and associated metal-lographic procedures are given in Table I. In evaluating this etch, a study was made of the topological features of the etched surface and their relation to the underlying crystalline structure. As part of this investigation, large crystals (2 mm average diameter) were grown in a 1-cm-sq Nickel 200 specimen. After the surface was etched, the crystallographic orientations of ten grains were determined by the standard back-reflection Laue technique of Gren-inger.4 Maximum extinction positions during a microscope stage rotation were also measured for the ten grains. Groove-wall positions on the surfaces of the ten grains were measured with a two-circle optical goniometer. The technique was essentially that of Barrett and Levenson.5 Several grain surfaces were photographed with a Philips Model 100A electron microscope. All specimens were replicated with collodion, or collodion backed with formvar and chromium shadowed at 18 to 20 deg. The basic material was Nickel 200. However, an electron-micrographic study was also made of surfaces developed by polarized-light etches on other fcc metals (90-10 a brass, Monel 400, and lead). All etching procedures are given in Tables I and 11. EXPERIMENTAL RESULTS Fig. 1 shows typical electron micrographs of three different fcc metal specimens and an optical micrograph of a fourth. All photographs show a grooved structure corresponding closely to Jones'3 predictions. Also, as noted by Jones, extinctions were always observed when groove axes were either parallel or perpendicular to the microscopes' vertical cross hair. The symmetry of the grooves, with respect to the twin boundaries in Fig. 1, implies that furrows have a crystallographic basis. The coarse-grained Nickel 200 specimen was used to study this basis. Facet Orientation. The poles of the ten Nickel 200

Jan 1, 1964

By G. W. White

Over the past several years, the steady progress of gas lift from a mysterious art into a developing science has been traceable through the many fine papers that have appeared in Journal of Petroleum Technology. Consequently, this magazine has rightly become a standard for the serious students of gas lift all over the world. The following discussion is offered in a sincere attempt to accurately present certain topics covered in the subject paper in the light of acknowledged state of the art procedures. INSTALLATION DESIGN The first point to be questioned is the author's installation design, beginning with Eq. 6. The use of 1,200 psi in the spacing equation instead of the 1,275 psi noted as available seems, at first glance, to be a simple arithmetic error. Upon further examination, it appears evident that both this 75 psi plus the 100-psi safety factor must be subtracted from available kickoff pressure because of conditions imposed by the characteristics of the ASC valve (see Fig. B-1). Pressure-charged valve design is incorrectly penalized by spacing the first valve using only 1,100 psi. The use of such a high back-pressure makes it appear that a typical ASC installation would require no more valves than a comparable conventional valve installation. Using a value of 100-psi tree pressure, the well could be valved to 11,000 ft very conservatively with seven pressure-operated valves, but would still require 11 ASC valves. The use of 400-B/D spacing gradient for a 140-B/D rate is not an accepted practice using precharged valves. The author would have done well to note the advantages to be gained by reducing the 500-psi tree pressure, which is clearly explained by Beadle, Harlan and Brown.' In Step 1 of Part III of the continuous flow discussion, the author incorrectly applies the Poettmann and Carpenter curves.2 Item 2 is an incorrect statement. An excellent reference on this point is the paper by Baxen-dell and Thomas.' VALVE MECHANICS The next topic relates to the mechanics of precharged valves. Eq. 2 for the ASC valve can be used to describe the condition of equilibrium, wherein the valve is closed with opening pending. When this equation is used to determine relative values of casing, dome and tubing pressure with conditions approaching the transition value, some strange results are obtained. The following uses the author's symbols and values given on page 689. Fig. B-1 shows the condition that exists at the moment an ASC valve has been uncovered during the unloading process (Condition I). The obvious result is a locked condition. The basis for the curve is shown on the figure which includes 1,000 psig casing pressure to uncover the valve. If injection gas is not bled off the casing until the pressure is decreased by an amount exceeding the stabilizer discharging valve pressure, upward adjustment of the casing pressure is mandatory for the valve to open and unloading operations to continue. In Condition I the dome pressure exceeds the casing pressure by 20 psi, and the tubing pressure required to open the valve is 1,212 psig. This tubing pressure would not exist under the assumed conditions. In Condition I1 the casing pressure is increased to the dome pressure, and the tubing pressure required to open the valve is 1,102 psig. It is apparent that the casing pressure must be increased to a value exceeding the dome pressure before unloading operations could continue. In Condition I11 a maximum casing pressure of 100 psi (stabilizer charging valve set pressure) above the dome pressure is reached, and the tubing pressure required to open the valve is 549 psig. The author's statement after Eq. 5 that "the minimum tubing pressure required to open an ASC valve is equal to the casing pressure at depth less the transition pressure of the valve" is incorrect except for Condition I11 only. Otherwise, the equation is invalid.

Jan 1, 1965